Connecticut regulators order refunds for electricity customers

$70 million due across New England

Published 7:50 pm, Monday, October 20, 2014

NEW BRITAIN >> Connecticut electric ratepayers will see a $30 million rebate after federal energy regulators ruled that 10 owners of power transmission lines, including Northeast Utilities and The United Illuminating Co., were getting too high a rate of return.

The money coming to Connecticut ratepayers as a result of the Federal Energy Regulatory ruling is part of a larger $70 million in refunds to ratepayers across New England.

Regulators from all six New England states challenged the 11.4 percent rate of return being received by transmission line owners more than three years ago. They were later joined in the complaint by environmental and consumer groups.

The central thesis for reducing the transmission line owners’ rate of return is that the 11.14 percent figure was calculated using financial information that was last updated in August 2006. The regulators argued that due to changes in the capital markets since then, including the recession, the rate was no longer “just and reasonable,” which is the standard for measuring rate of return for utilities.

FERC announced in June that it agreed with the position take by the New England regulators, but a final ruling on hold until it further investigate one aspect of an appropriate lower rate of return, which was determined to be 10.57 percent. Monday’s announcement represents a completion of that

Connecticut Gov. Dannel P. Malloy said the outcome of the case “demonstrates the state’s commitment to ensuring ratepayers are treated fairly.”

“Thanks to the Public Utilities Regulatory Authority’s careful scrutiny of charges, our families, seniors and businesses will see a refund and will not be burdened with additional costs that drive up electric bills,” Malloy said in a statement.

The FERC ruling specified a 30-day deadline for the refund to be issued to the participating states. The refunds would be based on a 15-month period from Oct. 1, 2011, to Dec. 31, 2012, but further information on what form they would take wasn’t immediately available.

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